At one of the world’s biggest bulk export ports in Western Australia, shippers safely completed the first transfer of ammonia from one vessel to another last month, Reuters reported.
According to the Reuters report by Jeslyn Lerh, Asia Energy Markets Correspondent, the first cargo ships that would be powered by ammonia are set to enter service in 2026, one of several alternatives the industry is tapping to shrink a carbon footprint accounting for nearly 3% of global emissions.
However, ammonia faces major cost and safety hurdles as a shipping fuel compared to others, such as liquefied natural gas (LNG), methanol, and biofuels. Jeslyn Lerh underlines ammonia’s appeal is that it is carbon free, and would be a zero emission fuel if made from hydrogen produced with renewable electricity.
Yet, safety is a big challenge for the product typically used for fertilisers and explosives according to Lerh.
Currently the lack of regulation, experience in use and toxicity of ammonia on board ships constitute major safety deterrents.
…said Laure Baratgin, head of commercial operations, Rio Tinto, to Reuters. She also added that once they gain confidence that the associated risks are sufficiently controlled, they will consider chartering ammonia dual-fuel vessels. However, the precise timing remains uncertain.
Globally, only 25 ammonia dual-fuel ships have been ordered as of 2024, trailing a fleet of at least 722 LNG-fuelled ships and 62 methanol-fuelled ships as of the same year which includes orders and ships that are already in operation.
Furthermore, refuelling ships, or bunkering, poses particular challenges with ammonia, which can cause acute poisoning and damage to the skin, eyes, and respiratory tract.
A study by the Global Centre for Maritime Decarbonisation (GCMD) identified 400 risks associated with ammonia bunkering, which it says can be mitigated with measures such as emergency-release couplings to shut systems when a leak is detected.
The GCMD is also creating a comprehensive emergency response plan specifically for ammonia spills, which pose unique containment challenges compared to oil spills. “With oil, you can see it—it remains on the surface and spreads in water. Ammonia, however, disperses into the air,” explained GCMD’s CEO, Lynn Loo.
Takahiro Rokuroda, general manager at NYK’s Next Generation Fuel Business Group, emphasized the need for industry guidelines to ensure seafarers can handle the fuel safely. Meanwhile, Singapore, the largest global hub for ship refueling, has shortlisted companies to explore ammonia’s potential for power generation and bunkering and is working to establish ammonia bunkering standards.
Reuters concludes that costs will have to drop sharply to make ammonia competitive in bunkering. Powering ships with ammonia can cost two to four times more than with conventional fuels, industry figures show, due to limited supply for the marine sector and an energy density about two-and-a-half times lower than traditional fuel.
